🍒 Banks get margin boost in Q2 from cheaper deposits, lack of slippages : Large banks, many of these from the public-sector pack, saw an expansion in their net interest margins (NIMs) in the quarter ended September as falling interest rates helped cut their outgo on deposits. A judicial order barring the recognition of fresh slippages after August 31 also helped NIMs. In contrast, a few large lenders from the private sector reported shrinkage in margins as they were unable to profitably deploy the large amount of liquidity in their hands. Given the excess liquidity and muted loan growth, large banks have slashed rates sharply over the past year, with one-year term deposit rates down 100-160 basis points (bps), according to a recent report by Credit Suisse. “With the sharp drop in funding costs over the past year, while lending rates have also come off, spreads have widened and have aided NIMs despite the excess liquidity on bank balance sheets,” the report said. - financial express
🍒 Punjab & Sind Bank narrows net loss at Rs 401 crore in Q2 FY21 : Punjab & Sind Bank on Thursday reported narrowing of its net loss at Rs 401.27 crore in the second quarter ended September 2020. The state-owned lender had posted a net loss of Rs 468.73 crore in the same period a year ago. The loss, however, widened sequentially from Rs 116.89 crore in the June quarter of FY2020-21. Total income of the bank fell to Rs 1,999.19 crore in July-September of 2020-21 from Rs 2,222.57 crore in the same period of 2019-20, Punjab & Sind Bank said in a regulatory filing. Bank’s provisioning for bad loans and contingencies were down at Rs 863.82 crore for Q2FY21 from Rs 972.62 crore in Q2FY20. Of this, bad loans or NPAs provisioning were Rs 845 crore, as against Rs 949.36 crore a year earlier. Asset quality impaired with gross non-performing assets (NPAs) rising to 14.06 per cent by end of September 2020 from 13.64 per cent at end of September 2019. Value wise, the gross NPAs stood at Rs 8,673.16 crore, lower than Rs 9,218.22 crore. - financial express
🍒 EXIM Bank to get Rs 3,000 crore for Lines of Credit for project exports ; The Centre will release Rs 3,000 crore to EXIM Bank to provide Lines of Credit for project exports, Finance Minister Nirmala Sitharaman announced on Thursday EXIM Bank extends Lines of Credit (LOC) on behalf of the Indian government, as assistance to developing countries under 'IDEAS' scheme. It promotes Indian export by mandating recipient countries to import 75 per cent value of the LOC.The projects supported through the scheme by EXIM Bank cover railways, power, transmission, road and transport, auto and auto components, sugar projects among others. So far, 811 export contracts, aggregating to $10.50 billion are being financed under LoCs. - Business Standard
🍒 Yes Bank case: Rana Kapoor's daughter Roshni gets bail : A magistrate court on Thursday granted bail to Yes Bank founder Rana Kapoors daughter Roshni Kapoor, an accused in the Yes Bank fraud case linked to DHFL, after she appeared before the court in response to summons issued to her. Roshni Kapoor was summoned by the court last month in connection with the case.She is one of the eight accused named in the chargesheet filed in the case by the CBI.Roshini Kapoor was granted bail by a magistrate's court, her lawyer Subash Jadhav said.. - economic times
🍒 AU Small Finance Bank starts operations in eastern India : AU Small Finance Bank, a scheduled commercial bank, started its operations in Eastern India with the setting up of a branch in the metropolis on Thursday. Since the start of banking operations three and half years ago, AU has presently 710 touchpoints in 13 states and two UTs, a bank spokesman said. Executive director of AU Bank Uttam Tibrewal said that the banking entity has started its journey in eastern India beginning with Kolkata. The city has been the hub of trade and commerce ever since the days of Independence, he added. Tibrewal said AU has built a net worth of Rs 4,900 crore with a deposit base of Rs 27,000 crore and loan of Rs 30,500 crore. - economic times
🍒 SIDBI commits Rs 250 cr funding to 3 firms; Stride Ventures gets up to Rs 85 cr : The Small Industries Development Bank of India (SIDBI) has committed Rs 250 crore funding to three funds, including Stride Ventures that has received up to Rs 85 crore. In a statement on Thursday, Stride Ventures said it has raised up to Rs 85 crore from SIDBI, and that the funds will strengthen the deployment of its maiden Stride Venture India Debt Fund I. "We are delighted to have joined hands with SIDBI in our journey to revolutionise venture lending."Their commitment of up to Rs 85 crore will further strengthen our deployment from our maiden fund - Stride Ventures India Debt Fund I," Stride Ventures founder and Managing Partner Ishpreet Singh Gandhi said. He added that SIDBI's support to indigenous funds strongly propels the country's mission to be 'Aatmanirbhar'. - economic times
🍒 Citibank expects card spends to reach year-ago level in Nov on festive offers, economic revival : Citibank expects debit and credit card spending by its customers in November to be at par with the performance in the year-ago period, a senior official said on Thursday. The increase in spends, which have been affected across the industry because of the pandemic, will happen on revival in economic conditions and also festive schemes launched by the bank, its head of credit cards, payments and unsecured lending, Arjun Chowdhry, told. It can be noted that local lenders, led by HDFC Bank and its peer ICICI Bank, have been reporting a return back to pre-COVID levels starting with the steps undertaken for opening up the economy after the stringent lockdowns - economic times
🍒 IRDAI tweaks norms on sale of life cover without wet signature : Life insurers should provide a standard presentation on the product being sold without the physical signature of the policyholder. A copy of such standardised presentation should also be e-mailed to the policyholder, along with the policy document, said the Insurance Regulatory and Development Authority of India (IRDAI) in a partial modification of the guidelines issued in September permitting insurers to do away with the mandatory physical signature for sale of insurance products. f the sale is made by an individual insurance agent, he should not solicit non-single premium unit-linked insurance policies for an annualised premium exceeding ₹50,000 or single premium unit-linked insurance policies exceeding ₹1 lakh, the regulator said in a circular. - Business Line
🍒 Central govt pensioners can submit digital life certificates to the postman ; India Post Payments Bank (IPPB) and Ministry of Electronics and Information Technology (MeitY) on Thursday have successfully launched the initiative of the Department of Pension and Pensioners’ Welfare (DoPPW): “Doorstep Service for submission of Digital Life Certificate (DLC) through Postman”. In order to avail this service through IPPB, pensioners can get detailed information on the IPPB website. “It is a chargeable service and will be available to all Central government pensioners across the country irrespective of the fact their pension accounts are in different bank,” a government statement said. - Business Line
🍒 As Covid curbed spends, home savings surged to 21% of GDP in Q1 : The propensity of households to save appears to have risen significantly during the pandemic as they have been unable to consume up to their normal levels and have raised their precautionary savings, according to the RBI’s latest monthly bulletin. Preliminary estimates show a jump in household financial savings to 21.4 per cent of GDP in the first quarter of FY21 (April-June), up from 7.9 per cent in the first quarter of the previous fiscal and 10 per cent in the March 2020 quarter. - Business Line
🍒 Paytm, Sachin Bansal’s Navi among bidders for DHFL stake in insurer : Our Bureau Over half-a-dozen companies including Vijay Shekhar Sharma’s Paytm, Sachin Bansal-led Navi, US-based Oaktree Capital, and Mumbai-based Piramal Enterprises have evinced interest in picking up the stake Dewan Housing Finance Corporation Ltd held in its life insurance joint venture, Pramerica Life Insurance. Sources close to the development said six-seven companies have submitted expressions of interest (EoIs) to acquire DHFL’s stake in Pramerica Life Insurance, earlier known as DHFL Pramerica Life Insurance Company. - Business Line
🍒 PFRDA expects process for NPS Trust separation to start next fiscal : The Pension Fund Regulatory and Development Authority (PFRDA) expects to begin the process for separating NPS Trust from itself in the next financial year as roping in a consultant for the process takes time, the regulator’s Chairman Supratim Bandyopadhyay said on Thursday. In the Union Budget for 2019-20, the government had proposed to separate the NPS Trust from the pension regulator in order to address issues of conflict of interest. “As per the directive of our board, we had floated an EoI (Expression of Interest) and we have got about 5-6 EoIs from very good consulting firms. Now, we will send RFP (Request for Proposal) to them. “The RFP process takes time, then our board will give a final approval. We have set a deadline of March 31 (2021) for a consultancy to pick-up its job. Thereafter, the separation process can start,” Bandyopadhyay told PTI. - financial express
🍒 Lakshmi Vilas Bank for deal with Clix without compromising on its core interest : Cash-starved Lakshmi Vilas Bank (LVB) said it wants to reach an early conclusion to the merger deal with Clix Group without compromising on its core interest. This comes in the wake of reports that Clix is unhappy with the delay in reaching the deal. LVB had received an indicative non-binding offer from Clix on October 8. Shakti Sinha, independent director and part of the three-member committee of directors (CoD) approved by the RBI to run the day-to-day operations of LVB, told FE that the two teams are meeting regularly and negotiations are going on. - financial express
🍒 FM’s Diwali gift to home buyers: Tax relief on difference between circle and market rates : Adding sparkle to the Diwali, Finance Minister Nirmala Sitharaman announced significant measures for those planning to buy residential units of up to Rs 2 crore. The initiative will also benefit developers who are hard pressed to offload unsold inventories, especially in those locations where the current market prices are below the circle rate – a rate at which different levies such as stamp duty, registration fee and other taxes are computed and paid. - Financial Express
🍒 Rupee slumps 28 paise against US dollar : The rupee depreciated 28 paise to close at 74.64 (provisional) against the US dollar on Thursday, as weak domestic equities weighed on investor sentiments. The local unit opened at 74.44 against the greenback at the interbank forex market and finally settled at 74.64 against the greenback, down 28 paise over its last close.
🍒 Dhanteras 2020: Gold prices steady for second day at Rs 50,702/10 gm; silver rises by Rs 357/kg : Gold prices were flat for the second day at Rs 50,702 per 10 gram in the Mumbai retail market on rupee depreciation and sluggish global market. The precious metal traded in a narrow range amid lack of fresh triggers despite weakness in the US dollar. The rate of 10 gram 22-carat gold in Mumbai was Rs 46,443 plus 3 percent GST, while 24-carat 10 gram was Rs 50,702 plus GST. The 18-carat gold quoted at Rs 38,027 plus GST in the retail market.Silver prices jumped Rs 357 to Rs 62,797 per kg from its closing on November 11.
🍒 Markets snap 8-session winning streak; Sensex drops 236 pts : After dropping 466.12 points during the day, the 30-share BSE index ended 236.48 points or 0.54 per cent lower at 43,357.19. Similarly, the broader NSE Nifty slipped 58.35 points or 0.46 per cent to 12,690.80.SBI was the top loser in the Sensex pack, shedding around 3 per cent, followed by Kotak Bank, IndusInd Bank, NTPC, ICICI Bank, Axis Bank and HDFC Bank. On the other hand, HUL, ITC, L&T, Bajaj Finserv and Tech Mahindra ended with gains..
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